I think the menus do look pretty weird scaled like that - which is why I'm looking forward to Luna Engine being updated for MV so we can start to make some custom menus.
I wish something like that would be implemented allready, because in GG Maker for "only" 64,99€, you can make easily the menus directly.
You make the windowsize and menu commands all in graphical way allready. Which is way easier to make then script them.
That is one of the hugest bummer of RPG Maker MV that is 73,99€ here and don't come up with customizable menus. :/
It is just a traditional RPG. Knowing this, does it change your answer at all?
As mentioned before, it's about the design itself.
It's harder to make good maps in HD or higher. For the first RPG or the start it's easier to stay with the native resolution of MV.
Here is again one point behind GG Maker, because it scales up and down from the main menu, after you created your installer and MV only supports 1 resolution without plugins. :/
For example if you go above 720p, some can't even launch the game. :/
And with Yanfly you only have 1 resolution. I need to agree that MV improved a lot, but a few things are still missing. :/
But enough of that and back to topic.
For my personal oppinion, I like the small screen size more, even the bigger size looks great too.
I think if it's more on the overworld, wood, grassland or ice regions, a higher resolution is great. Because it somehow gives you a better feeling of an open wordl.
If it's more underground and dungeonlike world, like in Dark Souls, then you are probably better with a small resolution.
Because it gives a more constricting feeling to the player. So it's all about atmosphere and personal taste. That's how I look at games at least.

(\s/)